Purchases are speeding up after learning that the agency will begin debt purchases on July 1 by reinvesting the maturities of its purchase program launched during the pandemic
The Ibex-35 accelerated its rise, regaining 8,300 points on a day marked by the surge in oil prices and the ECB’s annual meeting in Sintra, where the president, Christine Lagarde, showed a much more aggressive tone by opening the door. open to raising interest rates at the September meeting more than expected, following the already anticipated 25-point hike for July.
Despite this, the anti-fragmentation tool the body has been designing for weeks to prevent peripheral countries’ risk premiums from skyrocketing with the withdrawal of incentives is about to become a reality. And that same Friday, the institution will activate the purchase of debt by reinvesting the repayments maturing from the purchase program launched during the pandemic (PEPP).
And this confirmation is renewing the appetite of investors in Europe, with increases of more than 1% for the Ibex-35, which is leading the rise of the parquet floors of the old continent. With the most positive values, the biggest increases are for Repsol (+3.08%), Naturgy (+2.62%), Sacyr (+2.55%) and Sabadell (+2.5%).
At the bottom of the table are Fluidra, down 2.7%, and Rovi, down 1%.
With no major macroeconomic references until the coming days, investors are once again aware of the evolution of oil prices, which will continue to rise in positions ahead of the OPEC meeting next Thursday.
The Brent-type barrel, a benchmark in Europe, is again above USD 112.5, while the US West Texas is around USD 112, driven by the new sanctions that the G7 threatens to impose on Russia, including a “cap ‘ on the price of its black gold.
In this environment, and with investors calming down about the possibility of a recession, investors are also scaling back to fixed income markets. Bond sales lower their prices and raise interest rates again (which move inversely), keeping the yield on the German bund, the main benchmark in Europe, at 1.56%. That of the Spaniards is back at 2.7%, while the yield of the American bond (treasury) is again above 3.2%.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
